September 14, 2011 / 3:38 PM / 7 years ago

UPDATE 2-Golden Star cuts Q3 gold production outlook

* Cuts production outlook on two Ghana mines

* Shares fall 8 pct (Adds analyst comments, rewrites throughout)

Sept 14 (Reuters) - Golden Star Resources cut its quarterly gold production forecast for two of its mines in Ghana on lower-than-expected millgrade, sending the Canada-based miner’s shares down about 8 percent on Wednesday.

The company now expects its Bogoso/Prestea mine to produce 39,000 ounces of gold in the third quarter, down from its previous forecast of 43,000 ounces.

It also lowered its Wassa mine output view to 35,000 ounces from 40,000 ounces of gold.

Golden Star has a history of not being able to deliver on its forecast, National Bank Financial analyst Paolo Lostritto, who has a sector-perform rating on the company, said.

Shares of the company have lost nearly half their value since last December hurt by lacklustre production figures for 2010 on the back of lower grades of gold recovered from the two mines in Ghana.

“The lower guidance doesn’t change anything materially for the company,” said Trevor Turnbull of Scotia Capital, who has a sector underperform rating on the stock.

“But it still has a high cost, and lower production will definitely not help.”

The production outlook cut comes at a time when spot gold prices are at record levels and the company might miss the opportunity to sell more gold at top prices.

Shares of the company fell to C$2.34 on Wednesday on the Toronto Stock Exchange. (Reporting by Arnav Das Sharma in Bangalore; Editing by Joyjeet Das)

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